The S & P 500 closed at 2,212.23 yesterday, within 40 points of the 2,250 objective I have mentioned.
And yesterday followed the script I outlined in the update.? We were looking for support at the 2,203.12 level.? The low for the day was 2,202.21, within one point of the suggested support level.
After reversing off of 2,202, the market rallied to hit a high of 2,212.78.? The high was about 6 points under the 2,218.80 resistance level I mentioned.
To move higher, the S & 500 will need to clear 2,218.80.? Having said that, it could offer resistance as it is approached.? Watch this level today.
The short term charts remain bullish, so I would expect another rally if the S & P 500 cannot clear 2,218.
The NASD market did get a push yesterday.? The overall NASD Composite remains stronger than the QQQ.
And the QQQ is right under the 17.40 price level that should offer resistance.? You want to see if the QQQ can clear this level.
As for the VIX, it continues to drop.? And it is now under the 12.50 level.? I do expect a bounce in the VIX.? The question is what news driven story will drive the move?
With the VIX as such a bearish extreme, caution is advised.
At some point, the VIX will find support and push higher, resulting in a pullback for the markets.? I don?t see the VIX dropping under 9.38.
Continue to monitor the levels for entry points.
Here are the Key Levels for the Markets:
$VIX:
Major level ? 14.06
Minor level ? 13.67
Minor level ? 12.89
Major level - 12.50
Minor level ? 12.11*
Minor level ? 11.33
Major level ? 10.94
Major level ?? 9.38 ***
The objective should be 10.94.? With a close yesterday of 11.81, it is within one point of the objective.
I do not expect a drop under 9.38.
And a reverse split of the VIX would not be a shock.
$SPX:
Major level - 2,250.00
Minor level - 2,234.38
Minor level - 2,203.12 * <
Major level - 2,187.50 *
Minor level - 2,171.88
Minor level - 2,140.62
Major level - 2,125.00
Minor level - 2,109.38
Minor level - 2,078.12
Major level - 2,062.50
Objective should be to 2,250, but it will need to clear 2,218.
2,207 should offer minor support. 2,214.80 and 2,218.80 could offer resistance.
QQQ:
Major level - 121.88
Minor level - 121.10
Minor level - 119.53 *
Major level - 118.75 *
Minor level - 117.97
Minor level - 116.41 *
Major level - 115.63 ***
Minor level - 114.84
Minor level - 113.28
Major level - 112.50
Watch to see of the QQQ can clear 117.40.? Objective should be back to 118.75, but I would expect some resistance around 117.40.
115.63 should be major support on any pullback.
TLT:
Major level ? 125.00
Minor level ? 124.22
Minor level ? 122.66
Major level ? 121.88
Minor level ? 121.09
Minor level ? 119.53 **
Major level ? 118.75 **
Minor level -? 117.96
The TLT could not close above 119.53 yesterday. The TLT is oversold and a bounce should be expected.? But, any rally should fail.
122 should still be major resistance on a rally.
GLD:?
Major level: 115.63
Minor level: 114.85
Minor level: 113.28
Major level: 112.50 *
Minor level: 111.72 **
Minor level: 110.16
Major level: 109.38
Major level: 106.25
Like the TLT, the GLD is oversold short term. 112.50 should be resistance on a rally. Momentum is bearish.
XLE:
Minor level ? 75.78
Major level - 75.00
Minor level - 74.22 *
Minor level - 72.66
Major level - 71.88
Minor level - 71.10
Minor level - 69.53
Major level - 68.75
The XLE closed back above 75 yesterday, at 75.35.? It will need two closes above 75.78 to move up to 78.13.
The XLE is overbought short term and a pullback is the most likely scenario.? However, I would expect another rally after short term profit taking. The 74 area could offer support.
FXY:
Minor level: 87.89
Major level: 87.50
Minor level: 87.11
Minor level: 86.33
Major level: 85.94 **
Minor level: 85.55
Minor level: 84.77 **
Major level: 84.38
The FXY closed back under the 84.77 level.? Any rally would be short lived and an opportunity to short.
Look for resistance at 84.96 and 85.16.
AAPL:
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Major levels for Apple are 118.75, 115.63, 112.50, 106.25, 100, 93.75, and 87.50.
Apple did close under 110.93, so a retest of 106.25 should be expected. Support is at 109.38.? If Apple breaks under that level, expect a move down to 106.25.
WATCH LIST:
Bullish Stocks: LMT, GS, FDX, GD, BA, RTN, AET, CMI, PSX, SLB, JPM, APA, WDC, CLR, NBL
Bearish Stocks:? AGN, PANW, JAZZ, ATHN, CRM, CRL, UA, HBI
Be sure to check earnings release dates
